Loans suspended by North Yorkshire Credit Union

First published in News York Press: Photograph of the Author by , mark.stead@thepress.co.uk

A CREDIT union which covers York and North Yorkshire has temporarily stopped issuing new loans and taking on new members.

North Yorkshire Credit Union’s board of directors said the decision had been taken because of a review and reorganisation of its operation, but it expected to be able to fully restore its service within the next few weeks.

The organisation also called a temporary halt to its school savings clubs at the start of the new term due to an administrative backlog, but said these had now been reopened and were operating as normal. It has also said the decision to suspend new members and loans is not down to a shortage of money and no savings are at risk.

Nick Marshall, the credit union’s manager, said the move was due to a “financial issue” which was currently being discussed with the Financial Services Authority, but regulatory guidelines meant further details could not be made public at the moment. People who approach the union with a view to joining, or existing members who want to take out new loans, are being referred to Teesside-based charity Five Lamps until the suspension is lifted.

A statement from Coun Janet Looker, chairman of the board of directors of the union, said: “Due to a review and reorganisation of its service provision, the board of directors of North Yorkshire Credit Union has reluctantly taken the decision to temporarily stop issuing new loans and to stop accepting new members. We expect to shortly be informing our members of plans to fully restore credit union services in York and North Yorkshire.”

North Yorkshire Credit Union was formed in 2009, following the expansion of York Credit Union, and is open to anybody who lives, works, studies or volunteers in York and North Yorkshire.

Members pay a minimum of £1 to start a share account and can then apply for loans at “responsible” rates.

The union has about 5,000 active members and 7,000 in total, including 1,200 junior members, who are under 16.

Comments (5)

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12:05pm Sat 13 Oct 12

bob the builder says...

I always believed credit unions, though an honourable idea, were unsustainable given the core borrowing group are often unable to obtain credit with mainstream lenders due to their financial history or lack of regular earning potential. I expected them to go suffer from defaults on loans. Less well off people often make poor financial decisions and cannot exit the circle of poverty in great part due to the consumer culture of branded goods and convenience foods. No western government is willing to tackle that.
I always believed credit unions, though an honourable idea, were unsustainable given the core borrowing group are often unable to obtain credit with mainstream lenders due to their financial history or lack of regular earning potential. I expected them to go suffer from defaults on loans. Less well off people often make poor financial decisions and cannot exit the circle of poverty in great part due to the consumer culture of branded goods and convenience foods. No western government is willing to tackle that. bob the builder
  • Score: 0

12:05pm Sun 14 Oct 12

Older Sometimes Wiser says...

A useful and thoughtful opinion. Does anyone disagree?
A useful and thoughtful opinion. Does anyone disagree? Older Sometimes Wiser
  • Score: 0

5:29pm Sun 14 Oct 12

turkey kid says...

think again boys some like to help other/s
think again boys some like to help other/s turkey kid
  • Score: 0

4:43pm Mon 15 Oct 12

yorkborn66 says...

bob the builder wrote:
I always believed credit unions, though an honourable idea, were unsustainable given the core borrowing group are often unable to obtain credit with mainstream lenders due to their financial history or lack of regular earning potential. I expected them to go suffer from defaults on loans. Less well off people often make poor financial decisions and cannot exit the circle of poverty in great part due to the consumer culture of branded goods and convenience foods. No western government is willing to tackle that.
You’re obviously not a builder! What a stereotypical load of tripe you have expressed in your comment. I know lots of people that live within their means.
To condemn the poor and working class to bad decision makers financially is pure class distinction stupidity, bordering on self appointed snobbery .
[quote][p][bold]bob the builder[/bold] wrote: I always believed credit unions, though an honourable idea, were unsustainable given the core borrowing group are often unable to obtain credit with mainstream lenders due to their financial history or lack of regular earning potential. I expected them to go suffer from defaults on loans. Less well off people often make poor financial decisions and cannot exit the circle of poverty in great part due to the consumer culture of branded goods and convenience foods. No western government is willing to tackle that.[/p][/quote]You’re obviously not a builder! What a stereotypical load of tripe you have expressed in your comment. I know lots of people that live within their means. To condemn the poor and working class to bad decision makers financially is pure class distinction stupidity, bordering on self appointed snobbery . yorkborn66
  • Score: 0

12:25pm Tue 16 Oct 12

sounds weird but says...

yorkborn66 wrote:
bob the builder wrote: I always believed credit unions, though an honourable idea, were unsustainable given the core borrowing group are often unable to obtain credit with mainstream lenders due to their financial history or lack of regular earning potential. I expected them to go suffer from defaults on loans. Less well off people often make poor financial decisions and cannot exit the circle of poverty in great part due to the consumer culture of branded goods and convenience foods. No western government is willing to tackle that.
You’re obviously not a builder! What a stereotypical load of tripe you have expressed in your comment. I know lots of people that live within their means. To condemn the poor and working class to bad decision makers financially is pure class distinction stupidity, bordering on self appointed snobbery .
Bob the builder is right though..there are people who do not have the knowledge or tools get out of the vicious circle. I dont think he is picking sides or trying to be snobby, this is a distraction from what he is trying to say!

People who are less well off are not always surrounded by the knowledge and support they need.
[quote][p][bold]yorkborn66[/bold] wrote: [quote][p][bold]bob the builder[/bold] wrote: I always believed credit unions, though an honourable idea, were unsustainable given the core borrowing group are often unable to obtain credit with mainstream lenders due to their financial history or lack of regular earning potential. I expected them to go suffer from defaults on loans. Less well off people often make poor financial decisions and cannot exit the circle of poverty in great part due to the consumer culture of branded goods and convenience foods. No western government is willing to tackle that.[/p][/quote]You’re obviously not a builder! What a stereotypical load of tripe you have expressed in your comment. I know lots of people that live within their means. To condemn the poor and working class to bad decision makers financially is pure class distinction stupidity, bordering on self appointed snobbery .[/p][/quote]Bob the builder is right though..there are people who do not have the knowledge or tools get out of the vicious circle. I dont think he is picking sides or trying to be snobby, this is a distraction from what he is trying to say! People who are less well off are not always surrounded by the knowledge and support they need. sounds weird but
  • Score: 0

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